SanDisk rejected a €4.08 billion (US$5.85 billion) takeover offer from Samsung Electronics after its board determined the deal was 'inadequate in multiple respects,' an Associated Press report said.
SanDisk's shares shot up €5.44 (US$7.81), or 52%, to €(US$22.85) in after-hours trading after ending the regular session, the report said.
Samsung, in turn, said it had reiterated its per-share cash offer of €15.9 (US$26) for Milpitas-based SanDisk.
In letter to SanDisk's board dated September 15, Samsung CEO Yoon-Woo Lee said that after four months of negotiations, SanDisk 'continues to cling to unrealistic expectations on both its standalone market value and an appropriate merger price.'
But SanDisk shot back saying the price offered by Samsung undervalues the maker of flash storage and memory cards used in digital cameras, cell phones and other electronics.
SanDisk said Samsung had indicated that 'it might be willing to pay a significant premium' to SanDisk's closing price of €20.05 (US$28.75) per share in May, which it said was the date Samsung first approached SanDisk about a possible deal, the Associated Press report said.